Mrs Bectors Food IPO, which has entered its second day, is commanding a premium of 76% in grey market. According to reports, the grey market premium rose to Rs 220 on December 15, at the end of first day of IPO. This means the share is likely to be listed at around Rs 500.
The price band of the IPO has been fixed at Rs 286-288 per equity share. The firm plans to raise Rs 450-500 crore through the IPO. The company's biscuit products are sold under the flagship brand 'Mrs Bector's Cremica', and the premium bakery products under 'English Oven'. The likely listing premium of Bectors Food is lesser than the recent listing of Burger King. Share of Burger King listed at a premium of 92.25% over issue price of Rs 60 on BSE. Share of Burger King India opened at Rs 115.35.
Given the strong momentum in the market, the listing of Bectors Food can replicate the market debut of Burger King India but it would be interesting to see whether it can see a stellar rally post listing.
Burger King India shares have surged 233% over issue price since their debut on December 14. The stock closed 20% higher at Rs 199.25 on BSE today against its issue price of Rs 60.
Meanwhile, Mrs Bectors Food IPO was subscribed 10.65 times on second day of bidding today. The IPO received bids for 14.10 crore shares against the issue size of 1.32 crore, according to data available on NSE at 4:30 pm.
On the first day, the IPO of Mrs Bectors Food Specialities was subscribed 3.72 times. The issue received bids for 4.92 crore shares, against 1.32 crore shares on offer, according to data available with the NSE.